Letter says thousands to lose health care coverage due to Obamacare

NASHVILLE, Tenn. (AP) -- Thousands of Tennesseans have been notified that they will lose health insurance under a TennCare-sponsored program due to the new federal Affordable Care Act.

The Tennessean reports state officials sent a letter this month to people who had insurance through CoverTN, a plan that helped small businesses and the self-employed purchase benefits. The letter says the limited-benefit plan does not cover all the services required under federal law and won't be available after the end of this year.

Under the CoverTN plan, annual benefits were capped at $25,000. Yearly caps aren't allowed under the federal law.

The law establishes subsidies to help people purchase coverage on the federal Health Insurance Marketplace, which becomes active on Oct. 1.

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